Founder and CEO of crypto derivatives exchange FTX, Sam Bankman-Fried got a net worth boost of nearly $18 million, after fundraising a record $900 million for his company at an $18 billion valuation.
FTX - The Crypto Exchange To Watch
Crypto derivatives exchange FTX used to be worth only $1.2 billion a year ago. Since then, it has come a long way, counting over one million registered users, all ranging from retail investors to sophisticated day traders, family offices, and experienced institutional traders. One of the more pivotal moments for FTX was when it struck gold with high-profile sports sponsorships the past year. With NFL quarterback golden boy Tom Brady as its ambassador and multi-year brand partnerships with esports organization TSM and Major League Baseball, FTX was able to raise the stakes. So it was not much of a surprise when the exchange raised the largest private equity round in the history of the crypto industry. With an $18 billion valuation and a $900 million Series B fundraise, the company has come a long way with Sam Bankman-Fried (SBF) at its helm.
The Man Behind The Record Crypto Fundraising
A billionaire in his own right, SBF had a total net worth of $8.7 billion before the funding round. With the record-breaking funding achieved, SBF has added a further $18 million, making him one of the wealthiest under-30 citizens of Hong Kong.
After gaining trading experience in Wall Street for three years, he embarked on his crypto journey with his trading company Alameda Research and then eventually his derivatives exchange FTX.
Talking about his advent in the crypto industry, SBF said,
“I basically saw a lot of evidence that there is likely to be a really good deal to do with cryptocurrencies. A really new ecosystem, a lot of customer demand, huge volatility. Due to its rapid growth, there are not enough infrastructure agencies to support it.”
SBF moved to Hong Kong in 2018 to launch FTX after the US tightened crypto regulations and outlawed complex crypto products. FTX goes beyond the beginner trading platforms like Coinbase and offers sophisticated derivative crypto products similar to futures, options, volatility indexes, and leverage tokens.
Bankman-Fried is a proponent of the “effective altruism” philosophy of making quick money and donating it to charities. He continues to make influential donations by funding efforts to ensure the ethical development of AI. He has also donated $10 million to charities like The Humane League, an international nonprofit organization that works to end the abuse of animals raised for food through institutional and individual change.
HK’s Crypto Regulations Could Drive Him Away
However, like many other multinational companies, FTX is also worrying about Beijing’s National Security Act last year that questions their commitment to Chinese territory. However, SBF is more concerned about Hong Kong’s tightening regulations in the emerging crypto industry. With an upcoming bill on the docket that will require all exchanges to be fully licensed. He has revealed that if the city’s private investor ban also applied to citizens of other jurisdictions, he will move base with FTX.
In his own words,
“I have loved the time here … But in the end, the important thing is that we are in the right place for business. We are reaching out to find a government that is really excited to work with us.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.